Finance

24 October 2016

The financial sector has a major role to play in the energy and climate transition. This transition will mean revising traditional financing decisions to shift support to sectors that will “decarbonize” the economy and to accompany energy-intensive sectors as they reduce their greenhouse gas (GHG) emissions.

Organizations in finance are increasingly aware of the urgency of the transition, and of the risks attached to failure to respond to this imperative, and climate change criteria are progressively being taken into account in this sector. Carbone 4, with close to 10 years of experience as an expert in this field, accompanies the financial sector in this transition process, developing measurement and management tools, and helping clients devise their 2°C strategy or carry out more focused strategic studies, particularly before making a specific investment.

The climate impact of investment portfolios

Climate Risks Impact Screening

2°C investment strategy

Strategic studies

Seminars and training sessions

The climate impact of investment portfolios

Carbone 4 has devised methodologies that are specifically designed for the financial industry. Using indicators such as carbon footprint scopes 1+2+3 and avoided emissions, financial and investment companies can measure the impact of their portfolios and build 2°C investment strategies.

Climate Risks Impact Screening

Climate Risks Impact Screening is a methodology for evaluating the financial risk associated with physical risks due to climate change (flooding, heatwaves, etc.) in portfolios of listed assets (stocks and bonds). This approach cross-factors the impacts of climate change with business activity sector and the geographic location of companies,

to highlight the most vulnerable assets

to consolidate risk ratings for a portfolio.

2°C investment strategy

Firmly convinced that carbon impact assessment (induced and avoided emissions) is an indispensable tool for decarbonizing investment portfolios, Carbone 4 works with its clients to advance implementation of 2°C strategies, with the following approach:

Custom indicators are tailored to the portfolio, to ascertain the pertinence of component assets.

Relevant 2°C and other scenarios are analysed to explore options for constructing a 2°C strategy.

Carbone 4 has also conducted studies for bank clients of indicators to monitor climate risks and transition factors pertaining to financing decisions.

Key reference: BNP Paribas.

Seminars and training sessions

Carbone 4 offers training for financial companies and institutions designed to enable all staff in a given unit to develop competencies in energy and climate topics and related methodologies, and share the objectives of a carbon assessment approach.

Carbone 4 regularly leads strategic seminars on the energy transition. One such assignment was carried out for CDC, comprising a half-day awareness session followed by 10 collaborative thinking workshops. (Read more).

They trust us

BNP-EN

PAI-EN

Swen-EN

Mirova-EN

CNP-EN

Meridiam-EN

Carbone 4 is the leading consulting firm specialized in carbon strategy. The firm’s name refers to Factor 4, the name given to France's objective of cutting greenhouse gas (GHG) emissions by 750y 2050.